What is break-even ROAS?
WeAdU · Updated 5 October 2026
Break-even ROAS is the multiple at which gross margin covers Google Ads spend. The formula published on the audit page is: break-even ROAS = 1 ÷ gross margin, before overhead.
How do you read the formula?
The formula read on 3 October 2026 on the audit page is: break-even ROAS = 1 ÷ gross margin. It is calculated before overhead. The spend the live calculator uses is spend on Google Ads, in any currency. Displayed ROAS measures revenue brought back per ad dollar, not profit. A multiple above the line does not, by itself, say that the campaign leaves margin after other costs.
Put another way: gross margin is the share of revenue left after product cost. Dividing one by that share gives the revenue one dollar of Google Ads spend must bring back so that this margin covers the spend. Below the line, gross margin on the attributed sales does not pay for the media. Above it, it does, still before overhead. The table does not rank WeAdU campaigns. It applies the same formula to retail margin examples already shown on the calculator. The category average is not a target: the calculator page says reaching it can still mean a loss.
Which margin gives which threshold?
The margin table is the one published the same day on the calculator. The note under that table says these are industry figures, not WeAdU client results. Reaching the category average can still mean a loss. At 22% gross margin, the pure-play electronics retail benchmark published on the audit page, you need 4.55× just to break even, before overhead. The 2026 Google Shopping category average, published on the same page, is 3.8×. The links under the calculator benchmark are repeated below, with no summary of those articles.
What does the WeAdU audit cover?
The audit page, read the same day, adds: "The audit tells you your number, brand by brand." The homepage says: "The free audit covers Google Ads only." The calculator does not read another channel. This glossary page does not show the gap or the contribution the tool offers by default. This entry defines the threshold. It does not promise a ROAS, a margin, or a result.
| Gross margin | Break-even ROAS |
|---|---|
| 15 % | 6.67× |
| 20 % | 5.00× |
| 22 % | 4.55× |
| 25 % | 4.00× |
| 30 % | 3.33× |
| 40 % | 2.50× |
References already shown under the calculator benchmark, with no summary of those articles.